UPDATE 1-US weekly jobless claims surge to 16-year high

WASHINGTON, Nov 20 (Reuters) - The number of U.S. workers filing new claims for jobless benefits surged last week to their highest level in 16 years, Labor Department data showed on Thursday, as a harsh economic environment forces employers to cut back on hiring.

Initial claims for state unemployment insurance benefits were a seasonally adjusted 542,000 in the week ended Nov. 15 from a revised 515,000 the previous week. That was higher than analysts' forecast for a reading of 505,000 new claims.

The latest data has added to fears that the U.S. economy faces a deep recession and paints a gloomy outlook for the labor market.

"It means we're probably facing another payroll employment report showing November job losses in the vicinity of 200,000."

The four-week moving average of new jobless claims, a better gauge of underlying labor trends because it irons out week-to-week volatility, rose to 506,500 from 490,750 the week before, the highest since the start of 1983.